Flying High Incorporated, FHI is a division of the Master Toy Company. FHI makes remote controlled airplanes. During Year FHI incurred the following costs in the process of making planes.
Unit level material costs units x $ $
Unit level labor costs units x $
Unit level overhead costs x $
Depreciation cost of manufacturing equipment
Other manufacturing overhead
Inventory holding costs
Allocated portion of the Master Toy Companys facilitylevel costs
Total cost $
FHI has the opportunity to purchase the planes from Arland Manufacturing Company for $ each. Arland maintains adequate inventories so that it can supply its customers with planes on demand. Should FHI accept the opportunity to outsource the making of its planes?
Relevant cost is
FHI should make the planespurchase the planescannot be determined
